Caterpillar Inc (CAT) has the following excerpts from their financial statements December 31, 2021 December 31, 2020 Inventory (in $ Millions) 14,038 11,402 Net Income (in $ Millions) 6,489 2,998
- Caterpillar Inc (CAT) has the following excerpts from their financial statements
|
|
December 31, 2021 |
December 31, 2020 |
|
Inventory |
14,038 |
11,402 |
|
Net Income |
6,489 |
2,998 |
Inventories are principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis.
If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,258 million and $2,921 million higher than reported at December 31, 2021 and 2020, respectively.
Assume corporate tax rate of 21%.
If CAT had used FIFO method instead of LIFO method
What inventory (in $ Millions) would CAT report for 2021?
What net income (profit) would CAT report in 2021?
What is the cumulative amount of income tax savings that CAT generated through end of 2021 by using LIFO instead of FIFO?
What amount would be added to CAT’s
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